2013/05/09

Dylan Murphy: Money Laundering and The Drug Trade:

The role of the Banks. Mexico is in the grip of a murderous drug war, that has killed over 150,000 people since 2006. It is one of the most violent countries on earth. This drug war is a product of the transnational drug trade, which is worth up to $400 billion a year, and accounts for about 8% of all international trade. The American government maintains that there is no alternative, but to vigorously prosecute their zero tolerance policy of arresting drug users and their dealers. This has led to the incarceration of over 500,000 Americans. Meanwhile, the flood of illegal drugs into America continues unabated. One thing the American government has not done, is to prosecute the largest banks in the world, for supporting the drug cartels, by washing billions of dollars of their blood stained money. As Narco sphere journalist Bill Conroy has observed, banks are where the money is, in the global drug war. HSBC, Western Union, Bank of America, JP Morgan Chase & Co, Citigroup, Wachovia among many others, have allegedly failed to comply with American anti money laundering (AML) laws. The Mexican drug cartels have caught the headlines again and again, due to their murderous activities. The war between the different drug cartels and government security forces, has spilled the blood of tens of thousands of innocent people. The drug cartels would find it much harder to profit from their murderous activity, if they didn't have too big to fail banks willing to wash their dirty money. In March 2010, Wachovia cut a deal with the US government, which involved the bank being given fines of $160 million under a deferred prosecution agreement. This was due to Wachovia's heavy involvement in money laundering, moving up to $378.4 billion over several years. Not one banker was prosecuted for illegal involvement in the drug trade. Meanwhile small time drug dealers and users go to prison. If any member of the public is caught in possession of a few grams of coke or heroin, you can bet your bottom dollar, they will be going down to serve some hard time. However, if you are a banker caught laundering billions of dollars for some of the most murderous people on the planet, you get off with a slap on the wrist, in the form of some puny fine, and a deferred prosecution deal. Charles A Intriago, president of the Miami based Association of Certified Financial Crime Specialists has observed, If you are an individual and get caught, you get hammered
But if you are a big bank, and you are caught moving money for a terrorist or drug dealer, you don't have to worry. You just fork over a monetary penalty, and then raise your fees to make up for it.